Balonne Shire Council will apply for an $8 million loan from the Queensland Treasury Corporation to fund a wild dog exclusion fencing scheme.
The council will submit a borrowing application to the Minister for Local Government, Racing and Multicultural Affairs in coming days and if approved, will then seek a loan for approximately $8 million.
The council would initially draw down $5 million, with a resolution needed to access the remaining $3 million.
Under the scheme, participating landholders would be levied a special rate to recoup the 20-year fixed interest rate loan.
The decision comes after the Longreach Shire Council received an $18 million Queensland Treasury Corporation loan in 2016 for exclusion fencing.
Mayor Richard Marsh said the council had consulted extensively with landholders and expected the scheme would boost sheep numbers by an estimated 100,000 and boost our regional economy by $15 million per year within a decade.
"We have had expressions of interest for something like $19 million of fencing," he said.
"Sheep are more demanding of handling than cattle so that does also mean more employment and that's good for the economy."
Cr Marsh said there had already been a swing to more producers going back into sheep in recent years, with pimelea poisoning and anthrax among the difficulties that have faced cattle producers in the region.
Wild dogs had also been a problem, which made good fencing a good incentive for those wanting to make the switch, he said.
"We have something like 30 per cent of the shire already fenced," he said.
"After this we will probably have about 60 per cent of the shire exclusion fenced.
"We would like to see 100 per cent of the shire done but that's never really likely to happen."
Cr Marsh said the Balonne Shire Council was in the position of not having excessive debt and felt the loan would not be a major risk.
"We've had all the the tests done, all the financials done," he said.
Cr Marsh said the Balonne Shire Council had paid attention to how Longreach Shire Council had handled their own fencing scheme, including visiting the region to learn more.
Balonne Shire Council will host a forum on March 13 for landholders who lodged an expression of interest in the scheme.
